Egypt cancels planned tax changes
Egypt has cancelled a controversial proposal to tax share dividends and gains made in takeover deals, a senior advisor told Al Arabiya.
The proposals were part of sweeping new tax rules currently being discussed in Egypt, and had rattled markets and corporations in the economically fragile country.
Abdullah Shehata, economic advisor to President Mursi, told Al Arabiya that the decision had been made to cancel a proposed tax on both mergers and acquisitions and share dividends.
In a further sign that Egypt was easing its stance on the new charges, it emerged this week that taxes collected from Qatar National Bank 's acquisition of National Societe Generale Bank will be refunded to shareholders, Reuters reported.
Shehata said a proposed tax on buying stocks was still under discussion. That tax comprises a 0.001 percent charge paid by both buyer and seller in all Egyptian stock market transactions.
Egypt is still considering a tax on bank credit, loans and advances, Al Arabiya reported last week.
The new tax laws are currently being debated by the country’s upper parliament, known as the Shura Council.
- Fully booked for post-sanctions business: Iran's five star hotels are buzzing with Western business delegations
- The source of all brain drain: Lebanon's university graduates downbeat about their future prospects
- Is Erdogan's party waging a 'holy war' against the free market economy?
- Costs and benefits: the tough economics of hosting the World Cup
- Mind the gap: descripancy between income and social development persists in the Middle East